Intercontinental Exchange (ICE) has rejected the idea of a sale of the Trayport platform it acquired for $650 million, in response to this week’s proposal from UK watchdog the Competition and Markets Authority (CMA).
The Atlanta-based exchange operator said in a statement that it refuted the CMA's initial investigatory findings that the acquisition of the Trayport platform in December 2015 could lead to a lessening of competition.
In response to the watchdog's remedy proposal of complete divestiture of the platform, ICE said the idea was not "necessary, appropriate or in the best interests of Trayport's customers. ICE is committed to retaining ownership of Trayport and is willing to memorialize its intentions with regard to Trayport's future operation with formal CMA remedies."
While the CMA highlighted that ICE would be able to divert trades to its own platforms, as well as increasing fees for execution and clearing, as a direct result of its acquisition of Trayport, it would be open to the exchange operator changing the nature of the platform as a solution.
However ICE also rejected that compromise, stating that the Trayport platform would "continue to operate as it does today in European utilities markets and will ensure that brokers, exchanges and clearing houses are all treated fairly and reasonably."
"The findings are provisional and the final CMA decision is not expected to be known until mid-October", said the statement. "ICE now has an opportunity to address the CMA's concerns and demonstrate how they do not reflect the manner in which Trayport will operate as a subsidiary of ICE."
WatersTechnology attended the Futures Industry Association's annual conference in Boca Raton, Florida. These are the takeaways.Subscribe to Weekly Wrap emails
- The Insurgents: Fintechs Are Knocking Off Incumbents
- CFTC Commissioners Lash Out at EC Clearing Proposals
- Waters Wavelength Podcast Episode 113: IBM's Lund on Blockchain's Evolution
- Wrestling Over Competing Mifid II, GDPR Data Demands
- MarketAxess Banks on Asian Electronic Markets with BlackRock Partnership